Reference no: EM132817262
Problem - Nawazish Imports distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of December, Nawazish Import's inventory consisted of suitcases costing $1,200. During the month of January, the following merchandising transactions occurred.
July 1 Purchased suitcases on account for $1,500 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date.
July 3 Sold suitcases on account to Satchel World for $2,200. The cost of suitcases sold is $1,400.
July 9 Paid Trunk Manufacturers in full.
July 12 Received payment in full from Satchel World.
July 17 Sold suitcases on account to Lady 6060 for $1,400. The cost of the suitcases sold was $1,010.
July 18 Purchased suitcases on account for $1,900 from Holiday Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of $125 for freight on this date.
July 20 Received $300 credit (including freight) for suitcases returned to Holiday Manufacturers.
July 21 Received payment in full from Lady GoGo.
July 22 Sold suitcases on account to Vagabond for $2,250. The cost of suitcases said was $1,350.
July 30 Paid Holiday Manufacturers in full.
July 31 Granted Vagabond $200 credit for suitcases returned costing $120.
Nawazish Import's chart of accounts includes the following: No. 101 Cash. No. 112 Accounts Receivable, No. 120 Inventory. No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.
Required - Journalize the transactions for the month of January for Nawazish Imports using a perpetual inventory system.